Generative AI for Business Leaders: Strategies, Opportunities, and Risks

Artificial intelligence (AI) is transforming the business world, and generative AI is leading the charge. For business leaders, this technology offers tons of possibilities to boost efficiency, spark innovation, and stay competitive. But it also comes with challenges like costs, risks, and the need for careful planning.

This article breaks down what business leaders need to know about generative AI, drawing from expert insights and practical strategies to help you make the most of this powerful tool.

What Is Generative AI?

Generative AI, or Gen AI, is a type of AI that creates new content from existing data. Unlike traditional AI that predicts or analyzes, generative AI can produce text, images, music, or even code based on what it learns. Think of it as a creative partner -feed it data like product details or customer feedback, and it can generate a website description, a marketing campaign, or a custom design. This ability makes generative AI for business a game-changer across industries.

For example, a company launching a solar-powered bicycle could use Gen AI to draft product descriptions, press releases, and social media posts in minutes, saving time and effort. While humans still need to review the output, the process is much faster than starting from scratch. With about 60% of Canada’s workforce already using generative AI at work, its impact is growing fast.

How Business Leaders Can Use Generative AI?

Generative AI for business opens doors to new possibilities. Industry experts like Seamus Blackmore, CTO of Trudell Medical International, and Leila Pishdad, Machine Learning Lead at Borealis AI, shared insights at the Ivey Impact Live event that highlight these opportunities.

• Revolutionizing Sales: Experts explain how Gen AI can personalize sales at scale. By analyzing social profiles, it can draft tailored messages and strategies, freeing sales reps to focus on building relationships and closing deals. This moves sales beyond basic automation to a smarter, customer-focused approach.
• Simplifying Tasks: Experts see generative AI shining in customer support, where it can answer questions and navigate policies quickly, cutting wait times. Even small time savings add up, boosting efficiency across teams.
• Boosting Productivity: Gen AI can summarize research, generate code, or turn data into insights, helping employees focus on high-value work. For instance, developers can let Gen AI handle routine coding, while marketers use it to create engaging content fast.
• Enhancing Creativity: From designing visuals to modeling prototypes, generative AI fuel innovation. Architects or automakers can create drafts quickly, speeding up product development.
• Improving Operations: Gen AI optimizes processes like scheduling, cybersecurity, and document handling, making businesses run smoother and safer.

These uses show why business leaders can’t ignore generative AI.

Key Considerations for Implementation of Gen AI

Getting started with generative AI for business requires smart decisions. Here are five critical areas business leaders need to focus on, based on expert advice and industry insights.

1. Identify Your Use Case

Every business is unique, and generative AI works best when tailored to specific needs. Whether it’s healthcare analyzing patient data, retail optimizing prices, or finance detecting fraud, the key is finding a project that fits. Start by asking tech providers for examples from similar companies to guide your choice.

2. Build vs. Buy

Business leaders face a big choice: build custom Gen AI tools or buy ready-made solutions. Building makes sense if you have unique data or expertise, but it needs skilled talent and time. Buying is faster and often cheaper, especially with pre-trained models that can be customized. Consider your timeline, integration with existing systems, and long-term costs before deciding.

3. Invest Wisely

Implementing generative AI costs money, think high-end hardware, skilled staff, and secure data storage. However, pre-trained models can reduce expenses by letting you add your data with fewer resources. The return on investment comes from increased efficiency and innovation, making it worth the effort for many business leaders.

4. Ensure Trust and Safety

Gen AI can “hallucinate”, producing false or biased outputs, which poses risks to reputation and trust. Use guardrails like topical limits (e.g., restricting a chatbot to customer queries), safety filters (ensuring accurate responses), and security controls (protecting data). This builds confidence in generative AI for business.

5. Measure Success

Measurement is critical. Business leaders must define goals, like time saved or customer satisfaction, before deploying Gen AI. Track these metrics to see if the technology delivers value, ensuring it’s not just a trendy add-on.

Risks and Challenges of Generative AI in Business

While generative AI for business offers opportunities, it also brings risks that business leaders must address.

• High Costs: The initial price tag for hardware and talent is steep, though it’s dropping as Gen AI becomes more accessible. Experts note “people costs” and data security as major expenses, especially for on-premises systems.
• Hallucinations: False outputs can mislead customers or damage brands. Experts warn that online biases in training data can amplify this risk, urging business leaders to verify AI results.
• Talent Shortage: Skilled AI professionals are hard to find, adding to implementation challenges.
• Overhype: Experts caution against jumping to Gen AI for every problem. Traditional tools might work better for 99% of issues, so assess needs carefully.
• Compliance: With regulations like the EU AI Act (European Union Artificial Intelligence Act) looming, business leaders must ensure Gen AI meets legal and ethical standards.

Building a Generative AI Blueprint

To succeed, business leaders need a clear plan. This five-step blueprint, inspired by industry guides, helps prioritize and deploy generative AI for business.

• 1. Focus on Impact: Identify “paper cuts” -small tasks like content creation or document review that frustrate employees or customers. Use Gen AI to improve these areas, enhancing satisfaction and retention.
• 2. Customize with Data: Start with pre-trained models and add your data to create unique applications, like a virtual assistant for fans at a sports event or sentiment analysis for a bank.
• 3. Boost Productivity: Leverage Gen AI in existing tools, like code generators or analytics platforms, to save time and drive decisions.
• 4. Develop Skills: Train employees in hard skills (e.g., data handling) and soft skills (e.g., bias mitigation) to support Gen AI. Online courses can also help.
• 5. Innovate Responsibly: Test Gen AI thoroughly, set confidence levels, and maintain human oversight to manage risks.

Creating the Right Conditions for Success in Generative AI

For generative AI for business to thrive, business leaders must set the stage. Here’s how:

• Fix Your Data: Ensure data is comprehensive, integrated, and governed to fuel Gen AI effectively. Good data leads to good results.
• Use the Cloud: Opt for cloud infrastructure to handle Gen AI’s computing needs sustainably, avoiding outdated on-premises systems.
• Address Challenges: Tackle security, privacy, and hallucinations with strong governance. Regular risk assessments keep Gen AI on track.
• Experiment Boldly: Start with small, goal-oriented projects, learn from them, and educate your workforce to build a data-driven culture.
• Stay Excited: Embrace Gen AI as a chance to innovate, keeping your team motivated and forward-looking.

The Future of Generative AI for Business Leaders

Looking ahead, generative AI will reshape how business leaders work. Experts predict it will enhance planning and decision-making, like chatting with AI instead of clicking menus. This shift will demand leaders who understand Gen AI’s strengths and limits.

Fredrik Odegaard, who moderated the Ivey event, reminds us that business leaders must lead this change. “It’s up to us to shape the AI revolution,” he says. With the right strategy, generative AI for business can drive a better future, balancing innovation with responsibility.

Getting Started

Ready to dive in? Business leaders can:

• Learn the Basics: Explore courses on Gen AI.
• Pilot a Project: Test a use case like customer support chatbots.
• Build a Team: Partner with tech and ethics experts.
• Set Metrics: Track time saved or customer feedback to measure impact.
• Stay Updated: Follow AI trends to adapt quickly.

Conclusion

Generative AI for business is a powerful tool that offers business leaders a chance to innovate, save time, and grow. From personalizing sales to improving operations, the opportunities are vast. But risks like costs, hallucinations, and compliance require careful management. By building a solid blueprint, fostering skills, and creating the right conditions, leaders can harness Gen AI successfully.